Romanian developer Prime Kapital announced it would place all the present and future advance payments made by its customers in fiduciary accounts.
The company thus aims to reassure the customers who pay to reserve apartments in its residential projects during this crisis period.
Prime Kapital is self-financing and doesn't need the money from the payments in advance, which are a guarantee for the deal, the developer explained.
"We have a robust financial base, which allows us to develop the projects without depending on the funds from our customers," explained Maggie Kitshoff, Residential & Office Managing Director Prime Kapital.
The developer decided to place the money in accounts with reputable custodian banks so that they are safe and available to customers, should it fail to deliver the project. Furthermore, the fiduciary account can't be included in the funds claimed by creditors, in case the developer files for insolvency or goes bankrupt.
The fiduciary account is the account in which the founder deposits certain amounts of money which, being stored for a specific purpose, cannot be pursued by his creditors. The trustee will have the responsibility to pay those amounts to the beneficiaries of the trust.
Prime Kapital has chosen this solution to dissipate all the concerns that customers may have, given the similarity of the current situation with the previous economic crisis in 2008-2009.
(Photo source: the company)
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